Fuel price shock in April likely to feed into inflation and interest rates

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In this podcast, STANLIB’s Chief Economist, Kevin Lings, discusses the effect of the oil price on SA fuel prices, currently pointing to petrol increasing by around R6.50 a litre and diesel by R11 a litre in April. This is expected to cause shocks in the consumer and business sectors and feed into inflation, taking the inflation rate from a comfortable 3% to over 4.5%. The Reserve Bank is expected to keep rates on hold, but to issue a hawkish statement.
He also discusses interest rate developments around the world, where about 15 significant central banks have held meetings, and most have opted to keep rates on hold. However, they have signalled that if oil prices remain elevated and feed into broader inflationary pressures, they may be forced to hike rates.
STANLIB Asset Management (Pty) Ltd is an authorised Financial Services Provider in terms of the FAIS Act. This should not be construed as advice.
23 Mar English South Africa Investing · Business News

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